MIL collections problem

[inepta]

About 2 or 3 years ago my OH was in a car accident and we had a courtesy car for a while. When we took the car we were asked for a cheque for a fuel deposit only to be cashed in (or so we thought) if we happened to hand the car back empty of fuel (which we didn't). Anyway they unexpectedly cashed the cheque - or tried to. I was the end of the month and we had no overdraft and no money in the account.
Turns out they cashed the cheque straight away, well tried to but it bounced.
They wrote to us and asked us to pay a £50 admin fee. I refused to pay because I was adamant that they'd misinformed us about the cashing of this cheque and I thought that the charge of £50 was excessive for an admin charge . We received a few letters and then nothing.
Fast forward a few months and MIL collections started harassing me over this debt. They constantly call and send letters. One letter came this morning saying they had handed the debt to door to door collections and they said they will take court action if they are unable to recover the money.
My question is....do they have the legal right to pursue this debt and is it likely that they will accept a payment of £1 per month? We are in debt management and completely on our knees right now. Just had our pooch pts after a lengthy illness and have £0 in our bank account.

Any advice gratefully received.

[des8]

Re: MIL collections problem

Hi and welcome

MIL will doubtlessly add their own charges and write all sorts of threatening letters but I personally would ignore everything unless genuine court papers are served
If a door to door collector turns up (they shouldn't without a prior appointment) refuse to speak to them, don't open the door to them (or if it is open shut it), tell them to leave and certainly don't invite them in.

If court papers are issued I would dispute the claim.
You were misled about the cashing of the cheque.
They had no loss as you returned the car filled with fuel.
Any administration charges are their concern, not yours.

Mil buy up debts for pennies and then issue claims for money to which they aren't entitled.
They work on the basis of numbers, ie a certain number of "debtors" will pay up to avoid court and that gives them their profit.

Keep an eye on this thread as others will probably post about them

[charitynjw]

Re: MIL collections problem

Hi inepta.

Has MIL bought bought this alleged debt, or are they just acting as a debt collection agency for the courtesy car company?
If the former, have you received a Notice of Assignment informing you that MIL now own the debt?

[inepta]

Re: MIL collections problem

Hi and thank you for your reply.
I am terrified of someone turning up as we live with my folks and they don't know our financial situation. Do you think it is worth going back to the original creditors and trying to resolve the situation and put the mil account in dispute? Or will the original creditors have sold the debt? They have written on the letter Certegy who I assume was the first debt collector involved, I'm not sure if they are acting on their behalf.
After a quick google search MIL seem to be hasty with court action and ccj's. I had previously assumed that they wouldn't chase such a small amount but looks like I was wrong.

[charitynjw]

Re: MIL collections problem

Could you post up a copy of the letter (or type it verbatim) with your personal data removed?

[des8]

Re: MIL collections problem

Regarding your folks finding out about your personal financial situation, remember this is basically a company trying to obtain money to which they have no right, and certainly should not be discussing it with any other person, even family.

IMO the original claimants (the garage who tried to cash your cheque) are not creditors.
They did not keep to the agreement and expect you to pay their admin costs.
If anything they owe you money as doubtlessly your bank charged for returning the cheque unpaid.

As said, they have probably sold the ALLEGED debt, and it has now finished up with MIL who will rant and rave and threaten.
They may or may not have instructed door step collectors.
MIL certainly issue court claims, but appear not to turn up at court and so tend to lose.
Are they still only asking for £50?

Why not tell your folks you are being threatened by DCAs for a non existent debt (explain the circumstance) and tell them you are so disgusted by this you have no intention of paying it and wll if necessary defend it in court.
You think it is unacceptable that companies can act like this and get away with it as people don't know their rights and just pay up, but you are made of sterner stuff.
No need for folks to know your personal circumstances!

[seduraed]

Re: MIL collections problem

A doorstep colector has no rights and no powers. Do not confuse them with an "enforcement agent" who will ahve been appointed after court procedings.
I used to workas a debt collector door to door , most people are paying small amounts from which the collector is paid comission. The should not discuss the account with any person except the detor without the specific permission of the debtor and should leave any communication in a sealed envelope. ~Generally if they cannot speak to the debtor oafter three attempts then the account is reurned to the creditor.
So dont worry and follow the advice given. If actual court documents turn up then come back here for advice.

[charitynjw]

Re: MIL collections problem

ROIRA?

[des8]

Re: MIL collections problem

IMO not worth the effort.
If they ignore the notice, yes they are trespassing,and the landowner (not the op in this case) can sue for damages, which if awarded will only be nominal